Jeff Stemler, CLU, ChFC, CFP – Sr. Vice President – Advanced Planning (Asset Marketing Systems)
“He was exactly four years, six months, five days, seven hours and forty-two minutes old when he presented himself to the venerable Gatekeeper and waited for admittance to the Glorious Kingdom of God”
So begins the story of the “Littlest Angel”.
The story goes on tell how homesick and unhappy he is in heaven. When asked what would make him happy he said he had an old box hidden under his bed and it contained the things that were most precious to him.
His wish was granted, the box was returned to him and he was very happy to once again hold his beloved box and its contents. “When Jesus was born, the Littlest Angel had no gift for Jesus… except for his memory-filled box, and at the bottom of the box a limp, tooth-marked leather strap, once worn as a collar by his mongrel dog, who had died as he had lived, in absolute love and infinite devotion.”
I first heard this story when I was in the third grade and it has stayed with me all these years. Even at that young age, I understood this was an example of unconditional love, and that battered old box was the Littlest Angel’s ultimate gift.
With Christmas upon us, the thoughts of giving and receiving gifts are all around us. But there is one gift that can only be given with unconditional love and that is life insurance. We have nothing materially to gain by providing life insurance for our family, but we can know in our hearts that we have kept the promises when we got married and held our babies, to protect and provide for those we love.
Just like that battered old box, our gift of life insurance is our ultimate gift to our loved ones.
Sam Payne, RICP, CLTC – Vice President, Business Consultant (Asset Marketing Systems)
As we quickly approach the end of one tax year and the beginning of another, a review of Qualified Charitable Distributions (QCDs) and their application for some of your clients makes perfect sense.
Referrals, the holy grail of any enterprise, are a by-product of providing exceptional service and value to your existing clients. So much so that they want to share you with their friends and acquaintances, and so you become referable.
Informing and educating clients who can take advantage of QCDs about them, and the benefit of doing so is one of those opportunities to add value.
What is a QCD? QCDs have been around in some form since the Pension Protection Act in 2006. Their value changed as a result of the Tax Cuts and Jobs Act of 2015, and under current tax law, they can provide an additional benefit for tax years through 2025. Prior to 2017, the QCDs strategic importance lay primarily in the fact that it could help older taxpayers meet their philanthropic goals while also satisfying IRA required minimum distributions (RMDs).
Since the passage of the Tax Cuts and Jobs Act and the increase in the standard deduction, many individuals find themselves in a position where total itemized deductions do not exceed the standard deduction. So deducting charitable contributions will not have the benefit it may have had previously.
Here’s an example:
For the 2019 tax year, a couple plans to file jointly. They are both age 75 and anticipate adjusted gross income (AGI) of $125,000, including $60,000 in RMDs.
$125,000 total income (including 60,000 RMD)
Standard deduction $27,000
Charitable gift $5,000
Taxable income $98,000 ($125,000 minus standard deduction)
If the QCD was utilized, the taxable income would be $93,000 saving approximately $1,300 in taxes.
Reach out to your Business Consultant for more information on QCDs, the rules and limitations…then start talking to your clients currently receiving RMDs. Are they giving to a charity annually, and are they utilizing the QCD? If not, show them how to!
To get more background on Qualified Charitable Distributions, watch the video below to hear Sam Payne discuss the history of QCDs along with a case study.
Today is like any other day. At 5:30 I woke up. At 6:00 I helped Dad out of bed to go to the bathroom. By 7:00 I dressed him and sat him down so I could feed him his breakfast. After breakfast, I put him in his chair and turned on the TV. Around 9:00 took him to the bathroom again. At noon I prepared his lunch and fed it to him. The afternoon was TV and the usual bathroom breaks. Dinner was ready at 6:00 and I finished feeding him so he could watch his favorite show, Jeopardy, which is kind of funny since he has dementia and doesn’t know any of the answers. My day ends showering Dad and getting him into bed … tomorrow will be just like any other day.
Your life doesn’t end when you need extended care; the life, as they know it, can end for your care givers.
Extended care is a life changing event that can have devastating emotional and physical consequences to your spouse and children. Providing care to you may make them as chronically ill as you are. Those you love have no choice but to put aside their lives to make sure you are safe.
When you first got married and when your children were born you would do anything to assure their happiness and well-being. Long Term Care insurance is a gift of love. It is going to allow them to have a life. Long term Care insurance will allow them to supervise your care and not be the care givers, and for them tomorrow will be a brand new day.
November is Long Term Care awareness month and this topic certainly needs more awareness in our business. Unfortunately, too many clients do not insure themselves with Long Term Care coverage because they simply think they’ll be one of the people who don’t need it (only about 30% do not need care). The risk is obvious and the consequences to your family sometimes are overlooked if you become frail and need extended care.
The Asset product team has a variety of options and sales ideas to help you plan for your client’s Long Term Care risk. From Asset Based Long Term Care to FIAs with guaranteed income enhancements, when someone gets sick we can help you provide a solution.
The important part of positioning an underwritten Asset Based LTC product is to set the stage for that client during the sale and process. If they don’t qualify, we have incredible options using Fixed Index Annuities and enhanced income riders that will not involve underwriting. While FIAs with income riders are not true Long Term Care insurance, it will certainly help replace income when someone needs care.
Click here for the life top product list, and what our product team feels are the top three Asset Based LTC products!
Click here for the annuity top product list, and what our annuity team believes are the best products based on each client’s specific goals.
Would you like to see an illustration? Call the Asset Annuity & Life Team at 888-303-8755 and we’ll be happy to help you! Or, request an illustration through our Producer Portal by clicking here.
Josh Ver Hoeve, VP of Annuity Sales (Asset Marketing Systems)
Women may represent the single largest business opportunity over the next several decades. Here is just a sampling of why:
Women control an ever-increasing percentage of the personal wealth in this country – with estimates as high as $14 trillion – 51% of the current total
67% of the nation’s assets are anticipated to be in women’s hands by 2020
40% of women out-earn their husbands
Women continue to statistically outlive men
Women’s financial lives are also often more complex than men’s as they may need advice surrounding their roles as primary caregivers for not only their husbands but also their aging parents
As women age, their longer life spans leave them more susceptible to suddenly taking on additional financial responsibilities later in life
80% of women switch advisors within a year of their husband’s deaths
73% of women report being unhappy with the financial services industry
87% say they can’t find an advisor with whom they can connect
The industry needs to stop treating women as a little niche that it can possibly serve. They are the market. In fact, according to statistics, women make 80% of the purchasing choices in the current market. As baby boomers age and husbands die in unprecedented numbers, women are taking control of increasing amounts of wealth. It is no secret that women view money and money matters much differently than men do.
Women tend to view investing as a way to preserve their wealth as compared to the male view of investing as a way to increase their wealth – Men tend to be more willing to take risks, or at least risks that offer greater reward and failure than the ones women will take.
Women – especially widows – want to know how they can protect their lifestyle and not become a financial burden on their children.
The greatest risk women face in retirement is LONGEVITY! Longevity means that women have a higher risk of suffering debilitating illnesses, spending more on healthcare costs, and have a higher risk of ending up in skilled nursing care. Living longer means that women need to make sure that their money lasts as long as they do.
To help women plan for retirement, we need to help them grow and protect assets, and account for the traditional risks, like inflation, taxes, market risk, as well as a focus on longevity risk, including planning for health care costs and the likelihood of needing some form of Long Term Care at some point. Remember the goal of most women, is to never be a burden to their children. If we can help them put that fear and worry to rest, we will allow women to live their BEST lives in retirement.
Perhaps one of the best product solutions is an Asset Based LTC/Life policy or Asset Based with Chronic life insurance policy. These policies can be designed to protect women from many of these risks while adding additional protection benefits when a spouse passes the passing of a spouse. There are so many products to fill these needs.
Click here to download Asset’s new client approved brochure called Understanding The Importance of Long-Term Care and call the Asset Life Department to have us run an illustration for you at 888-303-8755.
A lot happened last week, with the market action being largely peripheral, despite all-time highs being reached by some stock indexes and healthy rallies in both stocks and bonds. On Wednesday, the Federal Reserve decided to cut interest rates for the third time in three months. In its previous statement, the Fed said it “will act as appropriate” to keep the economy going. This time, those words were missing. Instead, the Fed said it will “monitor the implications of incoming information for the economic outlook as it assesses the appropriate path.” In his post-meeting press conference, Fed Chair Jerome Powell said, “We believe that monetary policy is in a good place.”
The Fed’s language change coupled with Mr. Powell’s comments suggest that the Fed is now on hold and will require additional evidence before easing further. Overall, that is probably good news for the market. Low real (after inflation) rates are usually very good for stocks. And despite repeated predictions from many analysts, there’s still no sign of broad-based inflation.
In economic news, ADP said the economy created 125,000 private-sector jobs last month, 5,000 above expectations. Friday’s government jobs report for October showed a better-than-expected 128,000 jobs added. Manufacturing data was again weak. The government said that the economy grew at a 1.9 percent real annualized rate in the third quarter. That’s decent, but not great, basically in line with the current expansion. Overall, there’s no imminent threat of a recession.
Many continue to anticipate the announcement of a “phase one” trade deal between the U.S. and China despite news that the two countries’ leaders would not be able to meet at a canceled upcoming economic summit in Chile. Obviously, an end to the trade war with China would be a very good thing for the economy.
Last week was the season’s busiest for third-quarter earnings reports (nearly a third – 158 – of S&P 500 companies delivered results last week). In a typical pattern, the majority of S&P 500 companies that have reported to date have beat analyst estimates, but both Thomson Reuters and FactSet expect overall earnings for the group to have declined modestly on a year-over-year basis. A plunge in profits in the volatile energy sector is expected to be largely responsible for the drop.
A Friday rally spurred by the strong monthly jobs report helped stocks move solidly higher for a fourth consecutive week. The large-cap S&P 500 and the tech-heavy Nasdaq reached new intraday and closing highs, while the smaller-cap benchmarks remained well off their late-2018 peaks. Within the S&P 500, health care stocks outperformed while energy shares lagged. Reflecting improved sentiment, the VIX — the so-called “fear index” — touched a four-month low.
As usual, Friday’s jobs data and Wednesday’s GDP data received plenty of trader attention, and it was positive for stocks. However, last week also brought further evidence of a persistent slowdown in manufacturing and business investment. The jobs report sparked a smaller reaction in the bond market, where longer-term U.S. Treasury yields rose somewhat on Friday but ended the week substantially lower as traders anticipate a pause in the Fed’s easing cycle. The benchmark 10-year U.S. Treasury note fell 12bp last week to yield 1.73 percent.
Many stock markets in Europe rose throughout last week, buoyed by the European Union’s decision to grant the UK a three-month Brexit extension, encouraging Chinese manufacturing data, and strong asset inflows into the region. In Asia, Japanese stocks traded slightly higher last week and Chinese stocks also recorded a weekly gain as strong earnings from mainland companies and data showing an upswing in private manufacturing activity offset U.S. trade-related concerns.
From the headlines…
The U.S. economy added 128,000 jobs in October — more than the 75,000 economists expected — while the unemployment rate ticked higher to 3.6 percent, the Bureau of Labor Statistics announced Friday. The strong numbers came despite job growth held down by the 40-day United Auto Workers strike against General Motors, which has since ended.
The Chicago PMI, a reading that tracks manufacturing companies based in the Midwest, produced its weakest reading in four years and the second lowest in a decade. The Institute for Supply Management’s manufacturing gauge showed the sector contracted in October for a third straight month.
Federal Reserve officials cut interest rates for the third time this year on Wednesday and began to downplay expectations of further cuts for now. What it means to you.
The U.S. economy grew 1.9 percent in the third quarter. While slightly higher than what economists expected, the number marks a slowdown from the beginning of this year as the boost from President Trump’s tax cuts fades and the U.S.-China trade war weighs on growth.
The U.S. Treasury Department expressed continued interest in issuing a 50-year bond, for the first time, as part of efforts to expand its investor base as the budget deficit widens to $1 trillion.
“With leading Democratic presidential candidates proposing tens of trillions of dollars of new federal spending, Republicans’ abdication of fiscal conservatism leaves Americans with no responsible party.”
Chinese officials are casting doubts about reaching a comprehensive long-term trade deal with the U.S.
Tensions between the NBA and China have touched off an international firestorm. The parties remain at an impasse. They have also shined a light on the fight for human rights in Hong Kong — and the frontlinersat the center of the movement.
You might also have a look at the charts that scare Wall Street.
Americans paid banks $113 billion in credit card interest in 2018, up 12 percent from the $101 billion in interest paid in 2017, and up 49 percent over the last five years. That number is expected to go even higher for 2019.
“ALL BUSINESSES ARE LOOSELY FUNCTIONING DISASTERS, AND SOME ARE PROFITABLE DESPITE IT.
At 30,000 feet, the world is beautiful and orderly. On the ground, it’s chaotic and confusing. Nothing ever goes to plan. Surprises lurk around every corner. Things are constantly breaking. Someone is always upset. Mistakes are made daily. Expecting anything less is being out of touch with reality. And remember, just because you’re now aware of it doesn’t change reality. It was that way before, you just didn’t realize it.”
Securities and advisory services are offered through Madison Avenue Securities, LLC, a member of FINRA and SIPC, a registered investment advisor.
This report provides general information only and is based upon current public information we consider reliable. Neither the information nor any opinion expressed constitutes an offer or an invitation to make an offer, to buy or sell any securities or other investment or any options, futures or derivatives related to such securities or investments. It is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities, other investment or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities or other investments, if any, may fluctuate and that price or value of such securities and investments may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Diversification does not guaranty against loss in declining markets.
Frank Divers, Co-founder and CEO (Estate Documents Pro, LLC)
Remove the term estate planning out of your vocabulary. We are out of the estate plan sales business and full throttle into the education business.
Why? Simple, people don’t understand the term estate planning and are, in fact, intimidated by the wording. People fear what they don’t understand and taking the time to explain it will, for the most part, get you nowhere. The general response will be “oh, I see”. Not what you want to hear since it gets you nothing.
Consider this, asking questions that will lead to a response of “yes”. Do you have a durable power of attorney over finance? Yes or no. They say yes, do you keep it in a handy place and is it legal and up to date? They say no, you ask the question, “do you understand why this is one of the most important documents you can have”? Yes or no and regardless you go into detail about why having this document is critically important. Give examples of what can happen when you don’t have one. In ten to fifteen minutes of explaining the importance of having a durable power of attorney over finance and closing with the question, “now don’t you agree this is very important?” and you will get a resounding “yes”!
Follow this process, “do you have a durable power of attorney over healthcare?”. Educate and close with the same question, “now don’t you agree this is very important?” and you will get a resounding “yes”. “Do you have a will?” “Do you understand the difference between the government’s plan versus your own personal plan?” Educate through each question to get to the closing question of “yes, I agree having this document is important”.
Your job, invest some time to go online and find some stories about what not having one of these documents means versus having it. Take your time explaining the government’s plan. Don’t skim over the subject! Go into the details and doing so will lead to you getting a “yes” I agree. You have walked your client/prospect through the process of understanding all the documents they need in their life. That’s called estate planning. Congratulate your client on their wise decision to make sure their life is “planned out”.
Contact AMS to learn about our solution to marketing to Estate Planning and to get access to an all-digital planning platform.
October is National Estate Planning Month and although many times we think of life insurance when trying to solve estate planning concerns, annuities are just as important of a focus. Here are a couple of items to think about when dealing with Annuities and Estate Planning:
Most of the
common annuity mistakes that are made are very simple mistakes that
can be corrected by doing policy reviews. Common mistakes to look out
for are things like naming correct owners and annuitants, naming
primary and contingent beneficiaries correctly, but more importantly
updating them as time goes on. Nationwide happens to have an
advanced sales team to help you with some of these questions as it
relates to both life and annuity sales. Utilize the Nationwide
advanced sales team and the Asset team to assist you with any unique
circumstances you might have.
Transfer via Annuities:
Still, one of the
best death benefit wealth transfer annuities on the market is the
Athene BCA with FER MAX rider. When planning for wealth
transfer for a client who may not be insurable, be sure to ask the
annuity team about this product. Another very good accumulation
story and death benefit FIA option is with the Nationwide New
Heights using their high point death benefit rider. This
rider captures the highest daily value and uses that value as a lump
sum death benefit. Other options for simplified underwritten life
products are things like the EquiTrust WealthMax Bonus
which issues to age 80! This is a life product but works a lot like
an annuity and also has a 100% ROP.
“Estate and Legacy Planning is only for the wealthy,” or so many people often think. They immediately focus on wills, trusts and all of the other “legal stuff”. These are essential documents, even if you have a modest estate because ultimately we all have an estate plan – either the one we create ourselves or the one that the State dictates. So if you want to control the distribution of your assets you will need to deal with the “legal stuff”.
However, there is another side of Estate and Legacy Planning – the human and personal side. It’s about passing on your personal beliefs, ethics, and life experiences. We all have those faded pictures of our grandparents or even our great-grandparents. Many of us never met them and they’re strangers staring out from pale photographs. I urge each of you to please take a moment to read the Personal Legacy Statement Guide and think about how much you would have treasured such a letter from your parents and grandparents.
On a personal note, on my 17th birthday, my grandparents came up to me and said they had a present for me. I immediately thought “It’s a car!” No, it wasn’t, it was a letter. A letter from them telling me how proud they were of me and talked about my future and the keys to leading a good life. The keys included being honest, trustworthy, kind and considerate. Among other things they shared their thoughts on God, and their love for my parents and our Country.
I did get a car that year, from my parents, and that car is long gone. However that letter is in my house and our children and grandchildren know their great, and great-great Grandma and Grandad — not as faded photographs but as loving and caring individuals.
Please take the time to give your heirs the precious gifts of your love and wisdom.
Asset Marketing Systems has prepared a valuable guide that you can use to help your clients identify assets to add to their estate. Click here to download the PDF today. Call Asset Marketing Systems to learn about our all-digital Estate Planning software that’s opening more doors and creating more value for advisors.
The attack on a Saudi Arabian oil field last weekend is still sending reverberations through markets, far and wide, and it could have long-term implications for much more than the price of crude. Most immediately, Saudi Aramco could take some time fully to restore output at its giant Abqaiq plant, with oil analysts saying that damage at the facility is more severe than originally thought.
This event and its aftermath remind me of I game we used to play when I worked on one of Wall Street’s big trading floors (and recounted in Michael Lewis’s first book, Liar’s Poker): “What’s the trade?” The idea of the game was to propose a hypothetical world event and decide what the best trade is in response (e.g., nuclear plant problem in Russia — buy potato futures).
Here is how “What’s the trade?” played out immediately after the oil field attack: I filled my car’s gas tank right away, even though I didn’t need to. Not surprisingly, oil prices saw the biggest move, with U.S. WTI crude futures rising by 15 percent, the largest uptick since 2008. Stock prices fell, with the Dow, S&P and Nasdaq all ending moving lower. Airlines were hit hard as JetBlue and United Airlines both fell nearly 3 percent while American Airlines dropped 7.3 percent. Energy stocks, on the other hand, had their best day of the year, with the S&P Oil & Gas Production ETF jumping almost 11 percent, and the S&P energy sector rising out of a bear market with its best session of 2019. Yields on the benchmark 10-year U.S. Treasury note fell by the most in 3 weeks, as traders sought safe haven U.S. government debt. Gold prices also jumped 1 percent.
Since Monday, not nearly so much has happened, as markets moved on to look for “new news,” most notably last week’s Fed meeting. On Wednesday, the Federal Reserve voted to cut short-term interest rates by a quarter-percentage point for the second time in as many months to cushion the economy against a global slowdown amplified by the U.S.-China trade war. While they left the door open to additional cuts, officials were split over the decision and the outlook for further reductions. The differing opinions among FOMC members helped drive the spread between two and 10-year U.S. Treasury yields close to inversion, with shorter-term yields rising as the long-end dropped. “Jay Powell and the Federal Reserve Fail Again,” President Trump tweeted. “No ‘guts,’ no sense, no vision! A terrible communicator!”
“Since the middle of last year, the global growth outlook has weakened, notably in Europe and China. Additionally, a number of geopolitical risks, including Brexit, remain unresolved. Trade-policy tensions have waxed and waned, and elevated uncertainty is weighing on U.S. investment and exports. Our business contacts around the country have been telling us that uncertainty about trade policy has discouraged them from investing in their businesses.”
Domestic equities closed last week modestly lower. The broad stock market showed little reaction to the attacks and the ensuing jump in oil prices. Large-cap stocks outperformed small-caps. Higher-valuation growth companies held up slightly better than value stocks, with companies in the value-oriented transportation industry, which experienced steep losses as a result of the jump in oil prices, weighed on returns for the value category.
Oil prices remained volatile all week as Saudi Arabia adjusted its estimates for when it expects the production and processing facilities to come back online. Although oil prices moderated midweek, they still finished the week up approximately 6 percent.
Domestic stocks also displayed little reaction to Wednesday’s Fed’s decision to lower rates. Market participants had widely anticipated the move, and the Fed’s statement following the meeting had no substantive language changes from the previous meeting. Fed Chair Powell also seemed to stick closely with his script in his post-meeting press conference, giving investors little information about the central bank’s potential next move.
U.S. Treasury yields decreased as the jump in geopolitical risk in the Middle East seemed to convince some investors to move into safe-haven assets. Overnight lending rates were unusually volatile relating to the amount of bank reserves available for lending in the money markets. This caused the fed funds rate to break through the upper end of its target range before the Fed stepped in to inject more reserves into the system via overnight repurchase operations.
Stock markets in Europe were largely range-bound last week, even as trade negotiations between the U.S. and China resumed after two months and hopes for a Brexit deal rose. In Asia, Japanese stocks were up for the fifth straight week, while Chinese stocks retreated as a batch of closely watched indicators underscored the continued toll of the U.S. trade war on the country’s economy.
Funds that track broad U.S. equity indexes hit $4.27 trillion in assets as of August 31, according to Morningstar, giving them more money than stock-picking rivals for the first-ever monthly reporting period.
U.S. business optimism dropped this quarter to its lowest level in three years. U.S. home sales in August rose to the highest level in nearly a year and a half, sparking fresh hope that a protracted slump may finally be starting to reverse. Existing-home sales in August were up from a year earlier for the second straight month — following 16 straight months of declines.
Last year’s U.S. college graduates averaged about $29,200 in student loan debt — a record.
Economic activity in China cooled further in August, with industrial output and retail sales data suggesting sluggish demand and low confidence among businesses and consumers.
In 2010, coal supplied nearly half of America’s power, but this April, for the first time ever, renewables supplied more power to the U.S. electric grid than coal. Solar and wind are expected to power half the globe by 2050.
The U.S. continues to lag other developed nations when it comes to ensuring retirement security, according to the 2019 Natixis Global Retirement Index. In fact, the U.S dropped two spots to no.18 for retiree well-being, according to the annual index, which gives a snapshot of the well-being and financial security of retirees in 44 countries. And for all four indices measured, the U.S. ranked the same or lower this year.
Securities and advisory services are offered through Madison Avenue Securities, LLC, a member of FINRA and SIPC, a registered investment advisor.This report provides general information only and is based upon current public information we consider reliable. Neither the information nor any opinion expressed constitutes an offer or an invitation to make an offer, to buy or sell any securities or other investment or any options, futures or derivatives related to such securities or investments. It is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities, other investment or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities or other investments, if any, may fluctuate and that price or value of such securities and investments may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Diversification does not guaranty against loss in declining markets.
Term insurance is the simplest form of life insurance. Here’s how it works.
Provided by Asset Marketing Systems
Term insurance is the simplest form of life insurance. It provides temporary life insurance protection on a limited budget. Here’s how it works:
When policy holders buy term insurance, they buy coverage for a specific period and pay a specific price for that coverage.
If the policyholder dies during that time, their beneficiaries receive the benefit from the policy. If they outlive the term of the policy, it is no longer in effect. The person would have to reapply to receive any future benefit.
Unlike permanent insurance, term insurance only pays a death benefit. That’s one of the reasons term insurance tends to be less expensive than permanent insurance.
Many find term life insurance useful for covering specific financial responsibilities if they were to die unexpectedly. Term life insurance is often used to provide funds to cover:
College education for dependents
Would term life insurance be the best coverage for you and your family? That depends on your unique goals, needs, and circumstances. You may want to carefully examine the pros and cons of each type of life insurance before deciding what type of policy will be the best fit for you.
Another factor to think about: term policies generally become more expensive as you grow older. If your term life insurance expires and you are facing certain health challenges, such as an injury or disease, you may find that a policy with similar coverage may be much more expensive.
Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.